AUSTRALIA’S MIGRATION PROGRAM
Australia’s migration policy framework consists of the Migration Program, Temporary Entry visas and the Humanitarian Program. The allocation of places to each of the streams within this framework shapes the number and type of migrants Australia attracts and receives. (See Table A)
Each type of visa stream is designed for a particular purpose, and therefore encompasses different eligibility requirements. Differences in rationale, design and eligibility means that each visa stream has a different economic impact.
The economics of migration
In analysing the impact of Australia’s migration program it is necessary to consider a number of assumptions and factors. Under simple assumptions – of a fully scalable economy and where migrants have the same characteristics as the existing Australian population – migration would not have an effect on living standards. Rather, migration would simply increase the size of the Australian economy in proportion to the increase in the population arising from migration.
However, migration is a complex process and various factors do impact across the economy and labour market. There are effects from scale — increasing the population — and arising from the difference between new migrants and the existing population, as well as economies of scale from network infrastructure, diseconomies of scale from fixed factors, a terms of trade effect and endogenous growth effects.
These factors are discussed below.